If the Marginal Propensity to Save (MPS) Is 0

question 319

Multiple Choice

If the marginal propensity to save (MPS) is 0.5 and net exports falls by $10 million, then

• A) real Gross Domestic Product (GDP) will increase by $5 million.
• B) real Gross Domestic Product (GDP) will fall by $20 million.
• C) real Gross Domestic Product (GDP) will not change.
• D) the effect on real Gross Domestic Product (GDP) cannot be determined from the given information.

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Definitions:

Group's Development

The stages through which a group progresses, often including forming, storming, norming, performing, and adjourning.

Group Process

The dynamics and interactions that occur within a group as it seeks to achieve its objectives, affecting its performance and member satisfaction.

Orderly Interplay

A harmonious or organized interaction among elements in a system, ensuring stability and balance.

Ineffective Group

A group that fails to achieve its goals or fulfill its purpose due to lack of coordination, poor communication, or other factors undermining its effectiveness.